Lack of Clarity on functional Requirements: Desired functionalities are often not

communicated well. Sometimes the buyers themselves are unsure of what they
are looking for. This leads to repeatedly changing goals and requirements; while
this is tolerable to some extent, however excessive changes can cause delays,
increase cost, and result in inferior quality software.
Lack of commitment: Top management, although often being the ones deciding
to implement an ERP, are seldom aware of the scale and technicality of the
project. The lack of knowledge results in lack of commitment. This results in a
dearth of resources as well as time for ERP implementations. Without sufficient
resources the ERP project is doomed for failure. Often top management
frequently delegates the responsibility of over-seeing the project to lower level
managers.
Inadequate Training All users of the ERP system should be well trained. They
should be aware of all aspects of the system. Interactions with the vendor
implementation team should be encouraged.
Improper package selection ERPs now days are sold in packages, i.e. the ERP can
be broken into smaller components and each component purchased separately.
This allows customization for each implementation. Choosing the correct
package is essential. Buyers have to make sure that the package chosen satisfies
their requirements. Reasons for improper package selection include lack of
knowledge as well as lack of clarity about functional requirements. Sometimes
packages are wrongly chosen because the characteristics of the package arent
well understood.
Incompatibility with business processes Misfits with underlying processes can
severely affect ERP performance. These can be described as gaps between
software functions and organizational requirements. Incompatibility results from
poor understanding of underlying processes; both of the ERP as well as of the
business.
The factor common to all the reasons stated is lack of knowledge or awareness.
Examples:
Hersheys

was a problem for both digital (computer-related) and non-digital documentation and data
storage situations that resulted from the practice of truncating a four-digit year to two
digits.
Goals:
Fine tune deliveries to suppliers
Increase effiency by focusing on changing customer needs
Reduce inventory costs

Reasons:
1. Squeezed deadlines: originally for 4 years but forced to implement in 30
months
2. Implementted customer-relations package and logistics package with
testing the modules
3. Storage of data wasnt accurate. Order fulfilment and processing
shipments strated to arise. Could not meet the date of delivery

4. Lost their credibility in the market

HP
Started their migration of data with SAP into mySAP ERP
Goals: shorter lead and delivery times
Cost savings and establishment of a global distribution system
After 2 months, decreased revenues.
Reasons:
Increased dependence among the teams mis communication
Data integration problems: legacy system(outdated system, old) and
new sap system being implemented
Poor planning and improper testing
IT teams no proper training
3. Montclair university bought Oracles ERP system: to replace 25 year old legacy
system
Pacts included $4.3 million for software and support. The school and oracle also
agreed on a 15.75 $ million fixed-fee contarct for implementation services.
Goal: to manage documents using iProjects and also an integrated project
management plan
Dealdines were missed, refused to make avlble compter resources , failed to
delver properly tested sotware and overall failed to manage the project.